The true costs of small business fraud prevention Fraudjudge 22 June, 2022

The true costs of small business fraud prevention

When someone decides to embark on an entrepreneurial journey for the first time and informs their social circle about it, at least some of the people say something along the lines of “oh, so you’re going to become a jack of all trades now, huh?!” And there is some truth to that sentiment, to be honest. Entrepreneurs pride themselves on the ability to wear multiple hats in their business on any given day. Sometimes, being a jack of all trades can lead to an extraordinary success – just remember how Jeff Bezos started Amazon back in the late 90’s. 

Most businesses, however, will likely stay small, either by design or due to the market situation. Hence, most entrepreneurs are likely to stay in a jack of all trades role permanently while running their small businesses. Being a jack of all trades might give you a great working experience, but it also generates hidden and often overlooked costs – the opportunity cost of your attention. 

In small business, more than in a business of any other size, the attention of the founder is extremely scarce. There are only so many hours in a day, and even if you constantly work overtime, there are simply not enough hours to get everything done. Fraudsters in e-commerce space love targeting small businesses precisely because of this reson – while founders are overwhelmed with tasks and responsibilities, it is more likely that they will disregard any red flags that might have been triggered (even the most obvious ones sometimes) and execute flagged orders anyway. 

Shopify team has put together a basic checklist of fraud prevention measures that any small business owner should consider incorporating into their order fulfillment process. 

You might have read through this checklist and thought “it all sounds nice and promising, but I don’t have enough time to go through all of those manual steps with each order”. It’s totally understandable.  And the good news is that in the modern world you don’t have to! 

In the golden age of brick and mortar stores all additional administrative tasks, such as order verification, meant you had to hire a low paid employees whom you can delegate these tasks to. Hiring low paid, low skilled employees is a huge risk in itself (you have to train them, control them, the risk of internal fraud increases, particularly if you’re selling expensive goods), not to mention that even if wages are low, they’ll probably be too expensive anyway. 

But in a modern, digital world, high-quality fraud screening costs close to nothing!

How about paying just $0.03 (yes, that’s in cents!) flat fee per each order screened? No hidden fees, no long-term commitment! Each order will be screened automatically in under 1 second (instead of taking at least a couple of minutes when doing it manually), all of the basic Shopify recommended checks will be made and even more. 

If this sounds reasonable to you, then you should definitely try Fraud Judge app for your Shopify store! We even have a free plan to let you try our solution with the lowest investment possible. 
You can install Fraud Judge and start preventing fraud now via this link.